Disposed

M/S Bellary Spinning & Weaving Co. Pvt. Ltd. v. Nil

Karnataka HC7 Jan 2014CA/31/2013

Case brief

AI extract

What is this about?

The High Court considered an application under Section 462 of the Companies Act, 1956 to appoint an auditor and fix remuneration. The Court accepted the audit report and enhanced the auditor's fee range. It also dispensed with the requirement to furnish printed copies of the report to creditors and disposed of the application.

What did the court decide?

Appointment of auditor accepted; fee enhanced to Rs.500/- (min) and Rs.4,000/- (max); requirement to furnish printed report to creditors dispensed with.

M/S Bellary Spinning & Weaving Co. Pvt. Ltd. Vs Nil — Company and Corporate | Karnataka HC (2014)

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IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 07^TH DAY OF JANUARY 2014 BEFORE:

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THE HONOURABLE MR. JUSTICE ANAND BYRAREDDY

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COMPANY APPLICATION No. 31 OF 2013

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COMPANY PETITION No. 34 OF 1986

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BETWEEN:

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M/s. Bellary Spinning and Weaving Company Private Limited (in liquidation), represented by Official Liquidator, High Court of Karnataka, Corporate Bhavan, 12^th Floor, Raheja Towers, No.26-27, M.G.Road, Bangalore – 560 001.

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… APPLICANT

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(By Shri. K.S. Mahadevan , Advocate for Official Liquidator)

AND:

Nil.

…RESPONDENT

This Company Application is filed under Section 462 of the Companies Act, 1956 read with Rules 11[b] and 298 of the Companies [Court] Rules, 1959, praying to appoint an Auditor to

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audit the accounts of the Official Liquidator for the half year ending 30.09.2012 and fix his remuneration and etc;

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This Company Application coming on for Orders this day, the Court made the following: -

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O R D E R

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The audit report is accepted.

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Insofar as the auditor’s fee is concerned, it is noticed that

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this court, by its order dated 8.6.2007, had considered the need for enhancing the auditor’s fee payable and taking into consideration the minimum and maximum fee payable to the auditor, that was fixed in the year 1996 at Rs.110/- and Rs.1,000/-, respectively, had enhanced it to Rs.250/- being the minimum fee payable and

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Rs.2,000/- being the maximum fee payable.

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Having regard to the fact that seven years have elapsed

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since then and given the expenses involved, even towards the clerkage, it is appropriate that the fee be enhanced substantially.

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Accordingly, the minimum fee payable shall be Rs.500/- and the maximum fee payable shall be Rs.4,000/-. The

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Official Liquidator is permitted to pay the fee within the above range, in his discretion, having regard to the volume of work involved in the present case.

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The requirement under Section 462(5) of the Companies Act, 1956, of furnishing a printed copy of the audited report to each of the creditors, is dispensed with.

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The application is accordingly disposed of.

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Sd/JUDGE

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M/S Bellary Spinning & Weaving Co. Pvt. Ltd. v. Nil

Case brief

What is this about?

What did the court decide?

M/S Bellary Spinning & Weaving Co. Pvt. Ltd. v. Nil

Case brief

What is this about?

What did the court decide?

What the court decided

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